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Reconstruction Order Issued for BNC Amid Price Plunge and Operational Challenges

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The government has initiated a reconstruction order for Bindura Nickel Corporation (BNC)’s Trojan mine, Zimbabwe’s leading nickel producer, which is grappling with equipment breakdowns and plummeting global prices.

In a notice published on Thursday, Justice Minister Ziyambi Ziyambi appointed Mutsa Remba as the administrator, placing the company under reconstruction. This entails transferring control to the administrator, who is tasked with reviving the company.

“The board of the company under reconstruction shall be divested of the control and management of the company’s affairs, and any person managing or controlling the company’s affairs in any capacity other than as simply a member of the board referred to above shall continue in office subject to the control and direction of, and be answerable to, the administrator.” Remba, formerly an assistant administrator of Hwange Colliery, has experience in similar restructuring efforts from 2022.

The government can invoke the State Indebted Insolvent Companies Act to salvage distressed state-affiliated entities. BNC, predominantly owned by the state-owned Kuvimba Mining House (KMH), falls under this purview.

BNC’s plight reflects the broader crisis among Zimbabwean mining firms, which are struggling with capital shortages amid declining metal prices and escalating expenses. BNC anticipates an 8% increase in losses for the six months ending in March compared to the same period last year.

Since last year, Trojan Mine ceased nickel production due to a critical equipment failure – the Sub-Vertical Rock Winder (SVR) bull gear, essential for ore extraction. Although a replacement winder has been installed, operational challenges persist, delaying mining resumption, as stated in a Thursday stock exchange notice by BNC.

The company attributes its woes to nickel prices hovering at economically unsustainable levels, unable to offset soaring operational costs, particularly energy expenses, which surged by 40% for miners last year. BNC’s deep mining operations incur high production costs compounded by low ore grades.

Moreover, BNC underscores the imperative of securing capital for equipment upgrades, especially underground mining machinery and the processing plant, to revitalize operations.

Nickel prices surged to record highs of $100,000 per tonne in 2022, fueled by supply concerns following the Ukraine conflict. However, oversupply dynamics have since slashed prices to below $19,000 per tonne, marking a 25% decline from a year ago.

Thelma Nyabanga: Leading the Way as Acting Metallurgical Engineer at Eureka

Thelma Nyabanga is a 26-year-old ambitious young woman who graduated from the University of Zimbabwe with her Bachelor in Metallurgical Engineering in 2020 She completed her Masters in Mineral Processing and extractive Metallurgy in 2023. She joined Eureka Mine in 2021 as a graduate learner, was promoted to process metallurgist end of 2023 and she is now acting Metallurgical Engineer.

Despite her demanding career, Thelma is also a dedicated wife and proud mother of two.

Mining Zimbabwe had a one-on-one with Nyabanga and here is our interaction.

In your current role as Acting Metallurgical Engineer, you mention supervising and monitoring various plant operations. Can you share a specific instance where your skills in process optimization and problem-solving significantly improved plant efficiency at Eureka Gold Mine?

Well, I worked on a project where I developed a model for tracking our major consumables, which came as a major cost-saving initiative as we now get to control consumptions before they go out of hand, monitor daily and weekly consumptions against the budgeted targets, and apply corrective measures where necessary.

As a Process Metallurgist, you were involved in developing and maintaining quality assurance systems. How did you contribute to ensuring quality standards in mineral processing and any continuous improvement initiatives you implemented?

As part of process optimization, every day I conducted a thorough analysis of the processing operations, identifying areas of improvement, identifying bottlenecks, and proposing optimizations to enhance overall efficiency and product quality. I initiated continuous monitoring systems and utilized data analytics to identify trends, anomalies, and optimization opportunities in real time, which allows for timely intervention to address issues.

In your role, you monitored and adjusted the production process using statistical process control. Could you elaborate on how statistical analysis of processing parameters and metallurgical testing results has helped in achieving set targets at Eureka?

By analyzing historical data on processing parameters such as grind, and reagents dosage, among others, we can establish control limits and early detection of deviations from set targets. This allows for prompt corrective action, therefore minimizing the impact on product quality and process efficiency.

In your previous roles, you mentioned overseeing plant operations using advanced control systems like SCADA. Can you share how these systems enhanced operational control and contributed to achieving the target results?

SCADA plays a crucial role in overseeing plant operations in mineral processing through real-time monitoring, centralized control, historical data analysis, alarm management, to name a few. And by leveraging these capabilities, set targets are achieved more reliably, efficiently, and cost-effectively, ultimately driving overall plant performance and profitability.

With a Master’s degree in Mineral Processing and Extractive Metallurgy, how has your academic background influenced your approach to solving real-world challenges at the large-scale mineral processing plant?

It has helped a lot as I now have a deep understanding of the fundamental principles that drive our processes which allows me to analyze complex problems from first principles. Through coursework and research projects, I honed advanced analytical skills that enable me to systematically analyze data, identify patterns, and draw meaningful conclusions. Generally, I gained expertise in process optimization techniques like experimental design and statistical analysis.

As a leader, you have men working under you. As a 26-year-old woman, do you face any challenges or resistance working with men who at times will be ages closer to your parents?

Part of my management training was to learn interpersonal skills and communication proficiency and these skills have worked well in my favor. Most of the team are men and we have developed a good working relationship and we have mutual respect. The trick is to communicate effectively what you expect from them beforehand and clearly set targets all the while assuring them that we are a team.

With strong analytical skills, how do you use data analysis to drive decision-making in metallurgical processes?

It’s a requirement for the job of a metallurgist to have an inquisitive mind to question why is there and what could be done to better it. By systematically analyzing data, I get to identify opportunities for optimization and implement changes. Data analysis forms the basis of continuous improvement initiatives.

Guruve is deep in the rural areas, and as a young woman from Harare, how has moving to such a remote area affected you?

I have adjusted positively to the place and its peacefulness. My family has been very supportive from the get-go and has also adjusted quite positively to the move. I have no regrets so far.

Thoko is inspired to be like you. What’s your advice for her to excel like you?

Go for it, don’t doubt yourself, and anything is possible if you put your head to it what’s needed is the drive, focus, and determination.

Besides Mining business, what’s Thelma into?

Thelma is into Aviation and also loves cooking and baking.

When I’m not at work, I focus on my kids to cover up for the lost time.

DRC Mining Week focuses on sustainability win-win for mining houses and local communities

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Annual flagship event to host 8000+ mining professionals in Lubumbashi

DRC Mining Week returns to Lubumbashi in the heart of the Copperbelt in June with a bold, comprehensive and dedicated programme focusing on “Prioritising sustainable mining operations and local transformation in the DRC.” The event has already confirmed the presence and support of an impressive line-up of returning sponsors and mining houses.

For close to two decades, DRC Mining Week has served as the pivotal gathering for fostering the growth and development of the mining industry in the DRC.

“We have another thought-provoking and valuable programme planned from 12–14 June and the DRC Mining Week team is ready and raring to go!” says Samukelo Madlabane, Event Director – Mining at the Vuka Group, organisers of this long-running flagship conference and expo.

“Our focus of prioritising sustainable mining operations and local transformation in the DRC is line with the current global movement to meet the UN’s sustainability goals by 2030, and the mining community knows that it has an important part to play and contribution to make in this regard.”

Madlabane continues: “Our world is undergoing a transformative shift, and the mining sector is at the forefront of this evolution. With sustainability and local development as our guiding principles, the 2024 DRC Mining Week serves as a platform for industry leaders, experts and stakeholders to come together, share insights and forge innovative solutions.”

The event provides a broad spectrum of thought-provoking content and opportunities to meet existing and prospective partners and clients:

  • Energy Investment Forum;
  • Countless meeting and networking occasions for 1300+ elite decision-makers, including mining executives and government officials;
  • An expansive expo with 275+ companies showcasing the latest and trusted technologies and services for the industry, including 8 country pavilions;
  • A glittering awards evening celebrating mining pioneers;
  • The invitation-only CEO Roundtable;
  • Exclusive site visit to Kamoa mine;
  • The innovative Think It Business Roundtable; and
  • The annual Women In Mining high tea, which is always a hot ticket and an event highlight.

In total, more than 8,000 local and international mining professionals are expected at the event, promising valuable exposure and potential contacts for participating partners.

Discussions, debates and deals

The conference features sessions focusing on sustainable and responsible mining, energy infrastructure, value chain investments, strategic development planning, experts sharing case studies and best practices, regulations and tax management, improving regional trade, financial risks and opportunities as well as diversification in the sector.

Already the event has an impressive line-up of confirmed sponsors and partners, well-known as well as up-and-coming names in the sector, many of whom have been longstanding supporters of the event, returning year after year with senior delegations prepared to discuss, debate and do deals.

To name a few, Standard Bank are returning as the lead sponsors, while Ecobank, EquityBCDC, Glencore, Kamoto Copper Company S.A., Mumi and USAid are diamond plus sponsors. More mining houses that also confirmed their presence include Barrick, CMOC, ERG, Gecamines, Kibali Gold Mine, MMG and Tantalex Lithium Resources.

Compliments from high-level partners and guests about the 2023 event:

– I would like to congratulate the whole team for a very successful edition of the DRC Mining Week in Lubumbashi. We are very grateful for being invited to attend this important event. We look forward continuing our fruitful collaboration with you. – Mr. Huang Xia, United Nations Special Envoy, Great Lakes Region.

– DRC Mining Week was really great with an amazing variety of participants. I participated in several editions but this one was really special, we felt the desire of the delegates to get involved differently in the mining sector of the DRC and for Glencore, it is a must to take part in this event. – Marie-Chantal Kaninda, President, Glencore, DRC.

– Standard Bank is convinced that the Congolese economy will show a positive growth rate and the bank is willing to support this growth. – Marie-Gabrielle Opese, Chief Executive and Head of Corporate and Investment Banking (CIB), Standard Bank, DRC.

The brand new and packed brochure for the 2024 edition of DRC Mining Week is available now on the event website. Click here.

About DRC Mining Week

DRC Mining Week is organised by The VUKA Group (formerly Clarion Events Africa), a leading Cape Town-based and multi-award-winning organiser of exhibitions, conferences and digital events across the continent in the infrastructure, energy, mining, mobility, e-commerce and CX sectors. Other well-known events by The Vuka Group include the DRC-Africa Battery Metals Forum, Nigeria Mining Week, Enlit Africa, Africa’s Green Economy Summit, Smarter Mobility Africa, ECOM Africa and CEM Africa.

DRC Mining Week dates and venue: – Live event: 12–14 June 2024 – Expo and conference: 12–14 June 2024 – Location: Grand Karavia Hotel, Lubumbashi, DRC.

Zimplats delivers a year-on-year growth

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Zimplats Limited Holdings maintained stable production levels while achieving significant year-on-year growth. This quarter saw a 9% increase in mining output compared to the same period last year, driven by successful pillar reclamation efforts and continued development of the Mupani Mine. Metal production also showed a positive trend, with a 12% year-on-year improvement.

Patricia Rwafa

In a report released on 30 April 2024, Zimplats spent US$789 million during the quarter ending in March this year on major capital projects, including the development of the Mupani and Bimha mines upgrades as the platinum group metals miner expands operations.

Mining volumes remained unchanged from the prior quarter but increased by 9% year-on-year, benefiting from the pillar reclamation operations at Rukodzi Mine and the continued ramp-up of production from the Mupani Mine, which is under development.

Pillar reclamation activities also improved the 6E head grade, which was 2% higher year-on-year. The 1% reduction in grade from the prior quarter was due to the increased contribution of lower-grade Mupani Mine development ore and dilution from mining across geological structures.

Milled volumes increased by 7% and 3% compared to the comparative and prior quarters, respectively. A scheduled reline of the mills at the Selous Metallurgical Complex (SMC) was deferred to the fourth quarter of FY2024, with volumes benefiting from improved milling rates and running time, in line with higher ore supply.

Concentrate recoveries were stable compared to the prior quarter and increased by 5% from the comparative quarter, resulting in a 2% quarter-on-quarter and 14% year-on-year increase in the volume of 6E in concentrate produced.

6E metal in the final product improved by 12% year-on-year and was 1% higher than the prior quarter.

Cost containment initiatives implemented in the prior quarter progressed in the period under review, resulting in a 2% reduction in total operating cash costs from the prior quarter. Operating cash costs increased by 7% year-on-year, primarily due to the 9% and 7% increase in mining and milling volumes respectively, benefiting from cost mitigation efforts that helped contain the impact of persistent input inflation.

Transfers from stocks to operating costs amounted to US$2.8 million during the period, in line with the movement in inventory across the value chain.

Cash costs of metal produced increased by 5% and 1% from the comparative and prior quarter, respectively. The operating cash unit cost of US$821 per 6E ounce was marginally below that of the prior quarter and declined by 6% year-on-year, benefiting from volume gains that offset inflationary pressures experienced on electricity.

In light of the softer metal pricing environment, management has implemented various cash preservation measures, including labor rationalization and capital project rescheduling within cash constraints. In April 2024, 67 employees, representing 1.6% of the total permanent workforce, were retrenched.

The Bimha and Mupani mine development and upgrade projects will replace production from Rukodzi Mine (depleted in FY2022), and Ngwarati and Mupfuti mines (depleting in FY2025 and FY2028, respectively).

Cumulatively, US$395 million has been spent on these projects as of 31 March 2024, against a total project budget of US$468 million.

A total of US$340 million has been spent to date on the smelter expansion and SO2 abatement plant against a total project budget of US$521 million.

US$27 million has been spent on the implementation of the 35MW solar plant project to date, against a budget of US$37 million.

A total of US$27 million has been spent to date on the execution of the Base Metal Refinery refurbishment project, against a total budget of US$190 million.

Zimplats’ Matte Production Surges by 12%

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Australia Stock Exchange-listed platinum group metals (PGM) producer Zimplats, Zimbabwe’s leading PGM producer, has reported a remarkable 12 per cent increase in matte production.

By Rudairo Mapuranga

According to Impala Platinum Holdings Limited (Implats), Zimplats’ parent company, the impressive surge in production was driven by key contributions from Rukodzi Mine and Mupani Mine, underscoring the significance of efficient mining practices and operational optimization.

Implats reported that in the quarter ended 31 March 2024, Zimplats demonstrated strong performance, recording a notable 7 per cent increase in milled throughput, reaching 2.01 million tonnes. This growth was attributed to pillar reclamation activities at Rukodzi Mine, as well as a production volume ramp-up at Mupani Mine. Additionally, the deferral of a scheduled mill reline to the fourth quarter of the Financial Year 2024 further supported production volumes. Higher grade and improved process recoveries also contributed to the positive results, culminating in a 12 per cent increase in matte production to 166,000 6E ounces.

“Zimplats delivered a 7% increase in milled throughput to 2.01 million tonnes, benefiting from pillar reclamation activities at Rukodzi Mine, a production volume ramp-up at Mupani Mine, and the deferral of a scheduled mill reline to Q4 FY2024. Volumes also benefited from higher grade and improved process recoveries, and matte production increased by 12% to 166,000 6E ounces,” Implats said.

According to Implats, over the nine months ending 31 March 2024, Zimplats continued its upward trajectory, with mill throughput increasing by 6% to 5.92 million tonnes. The stability in grade, coupled with improved recoveries and processing stability at the expanded concentrator complex, further bolstered production. Positive inventory moves in the furnace also played a significant role in the overall performance. As a result, Zimplats achieved a commendable 10 per cent increase in matte production, totalling 493,000 6E ounces.

“Mill throughput increased by 6% to 5.92 million tonnes and, together with stable grade, improved recoveries, and processing stability at the expanded concentrator complex and positive inventory moves in the furnace, resulted in a 10% increase in matte production of 493,000 6E ounces,” the group said.

Zimplats’ success can be attributed to its relentless focus on operational efficiency, technological innovation, and strategic investments in key mining assets. By leveraging the synergies between its various operations, such as the pillar reclamation initiatives at Rukodzi Mine and production ramp-up at Mupani Mine, Zimplats has been able to optimize its production processes and maximize output even in challenging operating environments.

Mimosa in 13% production Increase despite Power Challenges

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Despite facing intermittent power disruptions and challenging ground conditions, the country’s second-biggest platinum group metals (PGM) producer, Mimosa Mining Company, has demonstrated remarkable resilience with a notable 13% increase in production.

by Rudairo Mapuranga

According to Impala Platinum Holdings Limited (Implats), which holds a 50% stake in Mimosa, the company’s strategic processing approach has been instrumental in navigating through these adversities, allowing it to maintain stability and even thrive in a demanding operating environment.

In its production report for the period ended 31 March 2024, Implats noted that during the quarter, Mimosa encountered sporadic regional power disruptions and difficult ground conditions. However, the integration and commissioning of the optimized plant project in the prior comparable quarter proved to be a game-changer. Despite a 5% decline in milled 6E head grade to 3.59g/t, Mimosa achieved a significant 13% increase in concentrate production to 63,000 6E ounces. This impressive result was attributed to improved process recoveries, highlighting the efficiency of Mimosa’s processing strategy.

“Mimosa navigated sporadic regional power disruptions and difficult ground conditions in the period but benefited from processing stability following the integration and commissioning of the optimized plant project in the prior comparable quarter. Milled volumes of 715,000 tonnes increased by 10% and, despite a 5% deterioration in milled 6E head grade to 3.59g/t, production in concentrate increased by 13% to 63,000 6E ounces, benefiting from improved process recoveries,” Implats said.

According to Implats, over the nine months ending 31 March 2024, Mimosa continued to deliver strong performance despite the challenges posed by poor ground conditions. The company’s mining operations remained robust, supported by improved plant stability and recoveries. Despite a 4% decline in 6E head grade to 3.61g/t, Mimosa recorded a 5% increase in 6E concentrate production, reaching 189,000 ounces. This achievement underscores Mimosa’s ability to optimize its operations and mitigate the impact of external factors on its production output.

“Mimosa benefited from strong mining performance and improved plant stability and recoveries in the period, which countered the grade impact of poor ground conditions. Milled throughput increased by 5% to 2.14 million tonnes and, while 6E head grade declined by 4% to 3.61g/t, 6E concentrate production of 189,000 was 5% higher than the prior comparable period,” the group said.

Mimosa’s success amidst adversity can be attributed to its proactive approach to operational efficiency and strategic planning. By investing in optimization projects and prioritizing stability in its processing operations, Mimosa has been able to maintain consistent production levels and even achieve growth in challenging times. Moreover, the company’s commitment to innovation and continuous improvement positions it strongly for future success in the dynamic PGM market.

Chamber proposes the creation of Mine Closure Rehabilitation Fund

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In an endeavour to ensure all mining areas are rehabilitated after the depletion of resources or when extraction is no longer viable, the Chamber of Mines of Zimbabwe (CoMZ) has proposed the establishment of a mine closure rehabilitation fund.

Rudairo Mapuranga

Speaking at the National Launch of The Action Aid’s Zimbabwe Accountability and Citizen Engagement Management (ZIMACE) Programme to promote sustainable environmental management in the mining sector held at Rainbow Towers Hotel in Harare recently, Chamber of Mines Mining Affairs Manager David Matyanga said the chamber proposed having a mine closure rehabilitation fund, which was supposed to be factored into the Mines and Minerals Amendment bill. However, the proposal was not included in the bill.

“As the Chamber, we have proposed to have a mine closure rehabilitation fund, which can be collective or voluntary. We have made this proposal to the Ministry of Mines as part of the Mines and Minerals Amendment Bill. We are concerned that this has not found its way into the bill. And we believe that such a fund, if properly managed, can deal with the legacy issues and ensure that those mines currently operating provide sufficient resources to address the environmental liabilities post-closure,” Matyanga said.

Closed or abandoned mines are very unsafe if left unrehabilitated. This is why we have mine rehabilitation, which is a sustainable response to the man-made destruction of lands through activities such as mining and drilling. Many companies, through mine rehabilitation, have successfully restored heavily polluted or toxic mining sites to a safe and functioning ecosystem.

After mining, the used land must be rehabilitated to prevent disastrous effects. If mined landscapes aren’t rehabilitated, they can negatively affect the surrounding air, water, and local agriculture severely.

Mine rehabilitation minimizes the environmental effects of mining and keeps surrounding land healthy by ensuring the stability and sustainability of the land, soil, and water of the site. It also seeks to partially or fully repair the ecosystem and prevent the pollution of surrounding environments.

Meanwhile, the Chamber of Mines will be holding its annual general meeting at Elephant Hills Resort in Victoria Falls from the 28th to the 30th of May 2024. Mining Executives, decision-makers and the Crème de la crème of the large-scale mining industry will be in attendance at the Premier event. This is an annual event that provides a platform for industry leaders, government, investors and financiers opportunity to interact and discuss key matters relevant to the development of the mining industry.

Zimbabwe gold buying prices per gram 6 May 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices/ gram today 6 May 2024.

SG 90% AND ABOVE US$69.71/g
SG ABOVE 85% BUT BELOW 90% US$68.97g
SG ABOVE 80% BUT BELOW 85% US$68.23/g
SG ABOVE 75% BUT BELOW 80% US$67.49/g
SAMPLE BELOW 10g BUT ABOVE 5g US$66.36/g

Fire Assay CASH $70.07/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match world market prices.

Zimbabwe gold buying prices/ gram 4 May 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices/ gram today 4 May 2024.

SG 90% AND ABOVE US$69.71/g
SG ABOVE 85% BUT BELOW 90% US$68.97g
SG ABOVE 80% BUT BELOW 85% US$68.23/g
SG ABOVE 75% BUT BELOW 80% US$67.49/g
SAMPLE BELOW 10g BUT ABOVE 5g US$66.36/g

Fire Assay CASH $70.07/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match world market prices.

Gold deliveries increase 31%+, ASM dominate submissions

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Gold deliveries to the country’s sole gold buyer, Fidelity Gold Refinery (FGR), surged by approximately 31.4 percent in April 2024 compared to the previous month, driven by increased contributions from artisanal and small-scale miners (ASM), according to figures obtained by Mining Zimbabwe.

April’s gold deliveries reached 2,386.9067 kilograms, marking a significant increase from the 1,816.5413 kilograms delivered in March 2024.

ASM deliveries soared by approximately 58 percent to 1,218.2045 kilograms in April, compared to 770.9838 kilograms in March, while deliveries by large-scale gold miners also rose by about 11.78 percent to 1,168.7022 kilograms from 1,045.5575 kilograms in March. For the first time in two months, ASM deliveries surpassed those of large-scale miners, accounting for approximately 51 percent of the total deliveries in April.

The first quarter of 2024 closed with total deliveries of 6,044 kilograms, slightly lower than the 6,194 kilograms recorded in the first quarter of 2023 and significantly below the 7,694 kilograms delivered in the first quarter of 2022, which was a record-breaking year. Large-scale miners delivered 51.995 percent (3,143.0683 kilograms) of the total deliveries in the first quarter of 2024, surpassing ASM who delivered 48.004 percent (2,901.8006 kilograms). Historically, ASM has been the country’s primary gold deliverer to FGR, accounting for over 61 percent of total gold deliveries.

Comparing to the record year of 2022, deliveries during the same quarter decreased by 24 percent to 7,694 kilograms. Additionally, deliveries in March 2024 dropped by 27 percent compared to March 2022, from 2,403 kilograms to 1,816 kilograms.

Zimbabwe’s gold deliveries declined by 15 percent in 2023 due to rising costs, power shortages, and government currency policies. Deliveries to Fidelity totaled 30.1 tonnes in 2023, down from 35.6 tonnes in 2022, which was a record year fueled by new mining projects and improved payments to small-scale miners, who make up the majority of Zimbabwe’s gold deliveries. However, sales slowed in 2023.

Gold output remained stagnant for large producers at 11.4 tonnes in 2023, showing little growth from the 11.2 tonnes delivered in 2022 and 2021. Small-scale producers experienced a sharp drop, delivering just 18.6 tonnes in 2023, a 23 percent decrease from the 24.1 tonnes sold in 2022, bringing deliveries back to 2021 levels.